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The simplest type requires the annuitant to pay a lump sum to an insurance company at the time the payments are to begin (for example, at age 65). Such a contract cissp testking is called a Single Premium Immediate Annuity or SPIA. If the contract calls for payments for as long as the annuitant lives, the payments can be maximized. They will probably exceed the returns that would be produced from other types of fixed dollar investments, and 70-528 testking the annuitant is purchasing an income that will not run out during his or her lifetime. The disadvantage of such a contract is that if the annuitant should die unexpectedly after having received only a few annuity payments, the total amount received from the insurance company might be much less pmp testking than the amount paid to the insurance company by the annuitant. On the other hand, if the annuitant lives to a very advanced age, the amount that the insurance company will pay out in annuity checks is much more than the lump sum that the annuitant paid to the company at the beginning of the contract.